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The Kermadec Ocean Sanctuary was announced with much fanfare by the National-led Government at the United Nations in 2015. All parties backed the Kermadec Ocean Sanctuary Bill at the first reading, though NZ First expressed serious reservations at the time.

It was put on hold after iwi challenged it in the High Court, saying that it breached Māori fishing rights.

The Greens sought to have the sanctuary progressed as part of coalition talks after the election, but NZ First, which has links to the fishing industry, was against it.

NZ First leader Winston Peters is now in discussion with Environment Minister David Parker about a possible "mixed-use" marine reserve.

That would mean the majority of the reserve would be off-limits to the industry, but a small amount of commercial fishing would be permitted.

Peters said NZ First had proposed the idea as a way of resolving the impasse on the sanctuary.

"We can't just leave it up in the air," he told the Herald.

He was confident that an agreement could be reached by the end of the year.